Deutz secures new syndicated loan to bolster finances

German engine manufacturer Deutz has replaced its existing funding arrangements with a new syndicated loan. The working capital facility totalling €160million is being provided by a syndicate of German banks. The credit line is unsecured and runs until June 2017. In addition, Deutz has received a low-interest loan amounting to €90 million from the European Investment Bank. This loan, which is also unsecured, is repayable over a period of eight years with a grace period of two years. Deutz has hedged the in
July 9, 2012 Read time: 2 mins

German engine manufacturer 201 Deutz has replaced its existing funding arrangements with a new syndicated loan.

The working capital facility totalling €160million is being provided by a syndicate of German banks. The credit line is unsecured and runs until June 2017.

In addition, Deutz has received a low-interest loan amounting to €90 million from the 1054 European Investment Bank. This loan, which is also unsecured, is repayable over a period of eight years with a grace period of two years. Deutz has hedged the interest-rate risk arising from this loan.

"This syndicated loan and the loan from the European Investment Bank have enabled us to secure long-term funding for our projects and further growth. The stronger position in which the Company now finds itself has allowed us to further reduce our interest expenses for the next years and to significantly widen the range of options available to us", said Dr Margarete Haase, Deutz management board member responsible for finance, human resources and investor relations.

In June 2012 the 2394 Volvo Group increased its shares in Deutz from 6.7% to 25%, making the Swedish construction machine manufacturer the single largest shareholder in the company. The deal is subject to regulatory approval.

For more information on companies in this article

Related Content

  • Wacker Neuson Group sees revenue rise 12% for 2014
    March 16, 2015
    International light and compact equipment manufacturer Wacker Neuson Group achieved record results for 2014 across most key performance indicators, the company reports. The group met its increased profit and the revenue forecast, despite challenging market conditions. Group revenue increased 11% to a record €1.28 billion, up from €1.16 billion in 2013 and in line with the company’s forecast. “Adjusted by currency effects, this corresponds to a growth of 12%,” a company statement said. Business in Central Eu
    Read More
  • Bentley Systems expanding through acquisition
    March 15, 2021
    Bentley Systems is expanding through acquisition.
    Read More
  • ARTBA sees growth for US transport construction
    December 5, 2017
    Steady growth in the US market for transport infrastructure construction in 2018. This prediction comes from a new report by the American Road & Transportation Builders Association (ARTBA). The report suggests that the US transportation infrastructure market will rebound slightly next year, following a 2.8% drop in 2017.
    Read More
  • Rokbak, the new name for Terex Trucks
    September 2, 2021
    Volvo CE’s off-highway articulated hauler business Terex Trucks has rebranded as Rokbak.
    Read More

Highlighted Content